Arbitrage : Business of buying in one exchange and selling in another to take advantage of price differences.

Auction : A mechanism used by the Stock Exchange to fulfill its obligation to the buyer of a security. It is done when the seller is unable to deliver the scrips sold by him. The security in question is offered by a member who has ready possession of the scrips.

Blue Chips : Shares of financially sound, well established companies with a track record of good growth and regular payment of dividends.

Bonus Shares : Shares allotted to the existing shareholders by capitalising the reserves into additional capital. When market expects a company to come out with a Bonus Issue, the price of the shares normally goes up.

Book Closure : A company closes its register of members for updating the records to facilitate payment of dividends or issue of rights of bonus shares. Book closure is the period during which this process is done and deliveries are not effected in the clearing house.

Bourse : A Stock Exchange

Bull : An operator who expects the share price to rise and takes position in the market to sell at a later date.

Call Option : An option where the buyer gets the right to buy the underlying security at a specified future date.

Carry Forward : Settlement where positions are carried forward from one settlement to another settlement.

Cash Settlement : Payment for transactions done in one settlement on the due date.

Circuit Breaker : A mechanism used to restrain the market when it gets overheated. The Exchange may relax the limit after a cooling off period of about half an hour.

Clearing House : It is a legal counter party to both legs of every trade. The netted purchase and sale positions of the trading Members are settled through the Clearing House.

Company Objection : In some cases, the companies send back the certificates received for transfer citing reasons for their inability to do so. The letter sent by the Company is known as Company Objection.

Cum Bonus : A share is described as cum bonus when the purchaser is entitled for current bonus

Cum Dividend : A shares is described as cum dividend when the purchaser is entitled for current dividend

Cum Rights : A share is described as cum rights when the purchaser is entitled for current rights

Pay In : The designated day on which the members pay securities and funds to the clearing house

Pay Out : The designated day on which the Clearing House effects payment and deliveries to the members

Price Band : It sets up the upper and lower limits for a share's movement on any given day. It is based on the previous trading day's closing price. The system will not accept the orders that are out of bound.

Price Rigging : A process where persons collude to artificially increase or decrease the price of a security

Put Option : An option where the buyer gets the right to sell the underlying security at a specified future date.

Record Date : The date on which the beneficial owner of the Corporate Benefits is determined.

Rematerialisation : Process of converting the shares from electronic form to physical form

Rights Issue : Issue of new share to the existing shareholders at a price which is normally lower than the current market price of the old shares. It is issued in a fixed ratio to the those shares which are already held.